Core Viewpoint - China Xuyang Group (01907) announced the sale of its wholly-owned subsidiary, Xuyang New Energy, to acquire 100% equity of the target company, Xingtai Xuyang Material New Technology Co., Ltd., for a consideration of RMB 54.6862 million [1] Summary by Relevant Sections Transaction Details - The transaction involves the sale of all equity of Xingtai Xuyang Material New Technology Co., Ltd. for RMB 54.6862 million [1] - The target company has not yet commenced substantial business operations since its establishment [1] Financial Implications - The company expects to realize a gain of approximately RMB 33.7693 million from the sale [1] - The sale is anticipated to reflect the intrinsic value of the target company's assets, primarily its land use rights [1] Strategic Rationale - The board believes that the sale is a favorable arrangement for the group, as the target company has not generated profits for the group [1]

Core Viewpoint - China Xuyang Group (01907) has announced the sale of its wholly-owned subsidiary, Xuyang New Energy, to acquire 100% equity of the target company, Xingtai Xuyang Material New Technology Co., Ltd., for a consideration of RMB 54.6862 million [1] Summary by Relevant Sections - **Transaction Details** - The equity transfer agreement was signed on October 31, 2025, with a total consideration of RMB 54.6862 million [1] - **Target Company Overview** - The target company has not yet commenced substantial business operations since its establishment and is currently planning to construct a high-end porous carbon industry base [1] - **Financial Impact** - The company expects to realize a gain of approximately RMB 33.7693 million from the sale, as the target company has not generated profits for the group [1] - **Strategic Rationale** - The board believes that the sale will unlock the intrinsic value of the target company's assets, primarily its land use rights, and views the transaction as a favorable arrangement for the group [1]

Core Viewpoint - China Xuyang Group (01907.HK) announced the sale of its wholly-owned subsidiary, Xuyang New Energy, to acquire 100% equity of Xingtai Xuyang Material New Technology Co., Ltd. for RMB 54.69 million, with expected gains of approximately RMB 33.77 million from the transaction [1] Group 1: Transaction Details - The equity transfer agreement was signed on October 31, 2025, with the sale price set at RMB 54.69 million [1] - Xingtai Xuyang Material New Technology Co., Ltd. was established in November 2023 with a registered capital of RMB 7 million and has not yet commenced substantial business operations [1] - The company plans to develop a porous carbon project and establish a high-end porous carbon industry base [1] Group 2: Financial Impact - The expected gain from the sale is approximately RMB 33.77 million, calculated as the difference between the sale price and the book value of the target company's 100% equity as of August 31, 2025, which is approximately RMB 20.92 million [1] - The actual gain from the sale will be determined based on the company's audited consolidated financial statements [1] - The proceeds from the sale are intended for daily operational expenses [1] Group 3: Strategic Rationale - The company believes that the sale will realize the intrinsic value of the target company's assets, primarily its land use rights [1] - The board considers the transaction to be a favorable arrangement for the group, as the target company has not generated profits for the group [1]

香港交易及結算所有限公司及香港聯合交易所有限公司對本公告的內容概不負 責，對其準確性或完整性亦不發表任何聲明，並明確表示，概不對因本公告全部 或任何部份內容而產生或因倚賴該等內容而引致的任何損失承擔任何責任。 China Risun Group Limited （於開曼群島註冊成立的有限公司） （股份代號：1907） 關連交易 出售目標公司全部股權 董事會謹此宣佈，於2025年10月31日，本公司全資附屬公司旭陽集團與旭陽新 能源簽訂股權轉讓協議，據此，旭陽集團同意出售及旭陽新能源同意收購目標 公司的全部股權，代價為人民幣54.6862百萬元。 上市規則涵義 旭陽控股由本公司控股股東、執行董事、行政總裁兼董事會主席楊雪崗先生及 其配偶路小梅女士（亦為執行董事）全資擁有，為楊雪崗先生及路小梅女士的 聯繫人，因而為本公司的關連人士。旭陽新能源為旭陽控股的間接全資附屬公 司，亦為本公司的關連人士。因此，根據上市規則第14A章，出售事項構成本 公司的關連交易。 鑒於出售事項的最高適用百分比率超過0.1%但低於5%，根據上市規則第14A 章，出售事項須遵守申報和公告的規定，但獲豁免遵守獨立股東批准的規定。 董事會謹此宣 ...

Core Viewpoint - The chemical industry is entering a downward cycle due to high costs and weak supply-demand dynamics, despite maintaining high capital expenditure and supply growth since the peak in 2021. However, there are "long-termist" companies capable of navigating through the cycle, providing substantial returns to investors through growth and dividends [1][2]. Group 1: Industry Overview - The chemical industry has experienced high capital expenditure and significant supply growth since the peak in 2021, but demand recovery remains relatively weak, leading to a high-cost and weak supply-demand environment [1]. - Long-termist companies in the chemical sector are characterized by strong shareholder backgrounds, excellent management capabilities, reasonable industry chain layouts, continuous R&D investment, and a strong sense of social responsibility, enabling them to achieve stable growth and sustainable development [2]. Group 2: Oil and Gas Sector - The "three major oil companies" (China National Petroleum, Sinopec, and CNOOC) are expected to maintain high capital expenditure and enhance natural gas market development, aiming for long-term growth despite oil price fluctuations [3]. - The domestic oil service companies are benefiting from high upstream capital expenditure, with improved operational quality and international competitiveness, particularly in the context of the Belt and Road Initiative [3]. Group 3: Refining and Chemical Fiber Industry - The refining and chemical fiber industry is anticipated to recover, with the refining expansion nearing completion and supply-demand dynamics expected to improve, leading to high-quality development in the sector [4]. - The polyester sector is seeing limited new capacity, with structural optimization accelerating, which is expected to enhance the market share and competitiveness of leading companies [4]. Group 4: Coal Chemical Industry - The coal chemical industry is projected to improve profitability due to a gradual easing of coal supply and demand, alongside a decline in coal prices. The transition towards modern coal chemical processes is seen as essential for traditional coal enterprises [5]. - The average prices for various coal types have decreased, with main coking coal, thermal coal, and anthracite prices showing declines of -10.5%, -2.0%, and -16.0% respectively compared to the beginning of the year [5]. Group 5: Investment Recommendations - The report suggests focusing on leading companies in the upstream oil and gas sector and oil service companies, including China National Petroleum (601857.SH), Sinopec (600028.SH), CNOOC (600938.SH), and others [6]. - For the refining and chemical fiber sector, companies like Hengli Petrochemical (600346.SH) and Rongsheng Petrochemical (002493.SZ) are recommended due to their potential benefits from industry optimization and upgrades [7]. - In the coal chemical sector, companies such as Hualu Hengsheng (600426.SH) and Baofeng Energy (600989.SH) are highlighted for their expected improvement in profitability [7]. - The report also suggests monitoring cyclical leading companies like Wanhua Chemical (600309.SH) and Satellite Chemical (002648.SZ) as demand recovers and supply-demand dynamics improve [7].

Core Viewpoint - The Federal Reserve's potential shift from a prolonged balance sheet reduction to a new round of quantitative easing is expected to significantly impact the macroeconomy and alter investment styles and preferences in global capital markets. Group 1: Company Overview - Xuyang Group (01907) is highlighted as a potential investment opportunity due to its strong competitiveness in the fine chemicals and coke sectors, particularly as the industry enters a new cycle following a period of low domestic demand for coke [1]. - The company has expanded its operational management service model, achieving high-quality scale expansion through a light-asset approach, and has added 2.6 million tons/year of new managed projects in Shanxi and Jilin [2]. - Xuyang Group's operational scale now includes 8 projects with a total capacity of 7 million tons/year for coke and 660,000 tons/year for chemicals, achieving a business volume of 4.5 million tons [2]. Group 2: Market Dynamics - The investment value of cyclical sectors is approaching a re-evaluation point, with signs of improvement in the coal market, particularly in coke prices, which have seen a recent increase of 50-75 yuan/ton due to rising demand and raw material costs [3]. - The domestic demand is expected to recover, driven by a higher-level "anti-involution" initiative, which is likely to positively impact upstream and midstream sectors, potentially leading to an earlier performance turnaround for Xuyang Group [3]. - Anticipated structural and industry-specific policies from high-level meetings may positively influence cyclical sectors, although the market has yet to fully price in these potential benefits for leading companies like Xuyang Group [4]. Group 3: Future Outlook - With the Federal Reserve likely to initiate a rate-cutting cycle, the subsequent global monetary easing is expected to have profound implications for effective demand stimulation, benefiting cyclical industries such as coke and chemicals [4]. - Xuyang Group has achieved historical highs in both coke and chemical new materials business volumes in the first half of the year, indicating successful transformation towards service-oriented manufacturing and ongoing global strategic expansion [4]. - The company is positioned to experience a "reversal of the investment clock" as market conditions improve, supported by robust fundamentals and growth potential [5].

Core Viewpoint - The Federal Reserve's potential shift from a prolonged balance sheet reduction to a new round of quantitative easing is expected to significantly impact the macroeconomy and alter investment styles and preferences in global capital markets. Group 1: Company Overview - Xuyang Group (01907) is highlighted as a potential investment opportunity due to its strong competitiveness in the fine chemicals and coke sectors, particularly as the industry enters a new cycle following a period of low domestic demand for coke [1][2]. - The company has expanded its operational management service model, achieving high-quality scale expansion through a light-asset approach, and has added 2.6 million tons/year of new managed projects in Shanxi and Jilin [2]. Group 2: Business Performance - Xuyang Group's operational scale includes 8 projects with a total capacity of 7 million tons/year for coke and 660,000 tons/year for chemicals, achieving a business volume of 4.5 million tons [2]. - The revenue from the operational management service segment reached 5.095 billion yuan in the first half of 2025, marking a year-on-year growth of 2.01% [2]. Group 3: Market Dynamics - The domestic PPI's year-on-year decline has narrowed, and coal prices, particularly for coke, are showing signs of improvement due to effective capacity governance and market order optimization [3]. - The coke market is expected to see price increases, with a recent rise of 50-75 yuan/ton, and further price hikes are anticipated in the near future [3]. Group 4: Strategic Development - Xuyang Group is accelerating its dual circulation development strategy for the coke business, having established an overseas production park in Indonesia and offices in various countries to enhance its global supply chain [2]. - The company’s international strategy has resulted in a production capacity of 3.2 million tons/year at its Sulawesi park, with projected sales of 2.22 million tons of coke in 2024, covering 51 customers across 17 countries [2]. Group 5: Future Outlook - The anticipated easing of monetary policy by the Federal Reserve and potential structural policies from domestic authorities are expected to positively impact cyclical sectors, including coke and chemicals [4]. - Xuyang Group's performance in the first half of the year has reached historical highs in both coke and chemical new materials, indicating successful transformation towards a service-oriented manufacturing model [4][5].

Core Insights - The launch of the first batch of green liquid fuel industrialization pilot projects by the National Energy Administration marks a significant acceleration in the industrialization of green liquid fuels, defining 2025 as the "substantial industrialization year" for China's green liquid fuel development [2][4]. Group 1: Policy and Project Overview - The National Energy Administration announced nine pilot projects focusing on green methanol, green ammonia, and cellulose ethanol, including significant projects like the coupling of wind power and biomass to produce methanol in Jilin and the production of 50,000 tons of green methanol in Inner Mongolia [2][4]. - The projects require simultaneous technological breakthroughs and market validation, with a completion deadline set for the end of 2026, ensuring a closed-loop system from production to application [2][4]. Group 2: Future Industry Landscape - The future green fuel industry is envisioned as a comprehensive ecosystem driven by green electricity, utilizing green hydrogen as a bridge, and integrating biomass resources to serve transportation, shipping, and green chemicals [3]. - Key technological pathways include the synthesis of green methanol from green hydrogen and captured CO2, and the production of biodiesel from various biomass materials, which will play a crucial role in decarbonizing shipping [3]. Group 3: Investment Recommendations - The shift in investment logic for the green liquid fuel industry will transition from "theme speculation" to "performance-driven," with the concentration of projects expected to generate substantial orders and revenue for related listed companies [4][5]. - Recommended areas for investment include full industry chain integrators, core equipment manufacturers, key materials and components suppliers, and fuel production and operation enterprises, with specific companies highlighted for their critical roles in the industry [5].

Investment Rating - The report maintains an investment rating of "Buy-B" for the following stocks:昊华科技 (600378.SH), 中国旭阳集团 (01907.HK), 宝丰能源 (600989.SH), and "Buy-A" for 卓越新能 (688196.SH) [1] Core Insights - The green liquid fuel industry is entering a substantial industrialization phase, marking 2025 as the "first year of substantial industrialization" in China, with a shift in investment logic from thematic speculation to performance-driven [2][4][29] - The National Energy Administration has initiated the first batch of green liquid fuel industrialization pilot projects, focusing on green methanol, green ammonia, and cellulose ethanol, which are expected to be operational by the end of 2026 [2][9][10] - The future green fuel industry will be a comprehensive ecosystem driven by green electricity, utilizing green hydrogen as a bridge, and integrating biomass resources to serve transportation, shipping, and green chemicals [3][15] Summary by Sections 1. Green Liquid Fuel Industrialization - The first batch of pilot projects includes nine projects, such as the integration of wind power and biomass for methanol production, with a focus on creating a closed-loop system from production to application [2][9][10] - The projects require simultaneous technological breakthroughs and market validation, emphasizing the need for clear end-user applications [9][10] 2. Market Performance - The report highlights the weekly performance of the chemical market, with specific segments like phosphate fertilizers and titanium dioxide showing significant gains [20][21] - The manufacturing PMI for September 2025 is reported at 49.8, indicating a slight improvement, while the industrial PPI has decreased by 2.9% year-on-year [16] 3. Investment Recommendations - The report suggests focusing on full industry chain integrators, core equipment manufacturers, key materials and components suppliers, and fuel production and operation companies [4][29] - Recommended companies include昊华科技, 中国旭阳集团, 宝丰能源, and 卓越新能, which are positioned to benefit from the industrialization of green liquid fuels [4][29]

Investment Rating - The industry investment rating is "Positive" [1] Core Viewpoints - The coal sector has shown a rise, outperforming the CSI 300 index by 4.81 percentage points, with a weekly increase of 4.3% as of October 10, 2025 [2] - The report anticipates that winter coal prices could reach 800 RMB/ton, with expectations of price increases during the heating season [6][25] - The supply-demand balance is expected to gradually improve in the fourth quarter, leading to a steady rise in coal prices [6][25] Supply Side Summary - Key monitored enterprises reported an average daily coal sales volume of 6.55 million tons from October 3 to October 9, 2025, a week-on-week decrease of 13% and a year-on-year decrease of 13.6% [2] - The average daily coal production from key monitored enterprises was 6.74 million tons, with a week-on-week decrease of 100% [2] - Total coal inventory (including port storage) reached 25.36 million tons, with a week-on-week increase of 4.4% and a year-on-year decrease of 9% [2][23] Demand Side Summary - Cumulative coal consumption in the power and chemical industries has decreased by 2.9% and increased by 15.4% year-on-year, respectively [2] - Iron and steel production has seen a year-on-year increase of 1.4% [2] Price Summary - The price of thermal coal (Q5500K) in the Bohai Rim was 677 RMB/ton, with a week-on-week increase of 0.15% [3] - The price of coking coal at major ports remained stable, while the price of metallurgical coke increased by 3.18% [4] - The report indicates that coal prices are expected to rise, particularly during the heating season [6][25] Sentiment Summary - The report highlights that the current coal asset dividends are reasonable, with a positive fundamental outlook [6][25] - The report suggests focusing on flexible thermal coal companies and coking coal companies undergoing turnaround [6][25]